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8 Pages

Apache acquires interest in Beryl Area for US$1.75 billion

Apache acquires interest in Beryl Area for US$1.75 billion

Report summary

Apache is to acquire a package of UK assets from ExxonMobil for US$1.75 billion. The key interests are a 50% operated interest in the Beryl Area, plus operated interests in surrounding subsea tie-backs. This is a landmark transaction in the European M&A market: the biggest asset deal since 2005, and the largest disposal by any Major to date.Our base case valuation of the deal is US$1.33 billion. However, this number reflects the development plans of the current operator, ExxonMobil. For ...

What's included?

This report includes 1 file(s)

  • Apache acquires interest in Beryl Area for US$1.75 billion PDF - 543.36 KB 8 Pages, 6 Tables, 3 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Beryl Area
    • Nevis South
    • Other interests
  • Deal analysis
    • Upsides
      • Forties lesson 1: Apache has an outstanding track record of delivering organic upside
      • Forties lesson 2: value creation through M&A is a tough game
    • Risks
      • Partner alignment and risk of pre-emption
      • Abandonment liability
      • Focus
    • ExxonMobil perspective
  • Oil & gas pricing and assumptions

In this report there are 9 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
    • Wood Mackenzie base production forecasts; 1) acquired portfolio (net to Apache); 2) Beryl (gross field)
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Forties production: Wood Mackenzie 2003 view vs. current view
    • Wood Mackenzie analysis of value creation through Forties acquisition
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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